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How Democrats Could Unleash Sweeping Data Center Crackdown

How Democrats Could Unleash Sweeping Data Center Crackdown

Summary

Democrats are considering tighter rules for data centers after winning control of both chambers of Congress in the midterm elections. Proposals include pausing new AI data center construction and requiring large facilities to pay more of the electricity-grid costs they create.

Key Facts

  • Data centers became an issue in races and ballot measures across the country.
  • Voters considered 41 data center ballot measures in 10 states; all but one supported some form of restriction or ban.
  • Bernie Sanders and Alexandria Ocasio-Cortez introduced legislation to halt construction of new AI data centers.
  • New Jersey Representative Frank Pallone Jr. has also supported a moratorium on new data centers.
  • Democrats blocked the Ratepayer Protection Act, which would have required states to consider standards for allocating data center electricity costs.
  • The proposed GRID Savings Act would require data centers with electricity demands of at least 150 megawatts to cover related grid costs.
  • The bipartisan GRID Act would prevent new facilities with electricity demands of at least 20 megawatts.
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